VKF_FRAE_2017

45 VakıfBank Annual Report 2017 »» IN 2017, THE RATE OF DEPOSIT INCREASE ACCELERATED. In 2017 there was a rapid increase in deposits as well. The annual rate of increase in deposits, which was 16.7% at the end of 2016, rose to as high as 23.7% in October 2017, before ending the year at 17.7%. Since the current loan-to-deposit ratio is above 100%, the rapid expansion in loans has urged banks to find new resources, triggering a rise in deposit interest rates and a swift increase in deposits. In 2017, deposits concentrated in the short- term. Deposits with a maturity of 1 to 3 months accounted for 53.1% of total deposits in 2017. The annual rate of increase in deposits is expected to decelerate to 15.6% at the end of 2018, as a result of the deceleration in loan growth and the decline in interest rates. In the year 2017, there was also a rapid increase in non-deposit resources. Their annual growth rate rose from 15% at the end of 2016 to 21.6% in 2017. The high loan-to-deposit ratio and the rapid increase in loans were also key factors driving the increase in non-deposit funding sources. The sector’s rising profit in 2017 also led to an increase in shareholders’ equity, which expanded 19.6% in 2017. In 2017, the loan- to-deposit ratio was 122.6%. The conversion rate of TL deposits into TL loans, on the other hand, reached 150%. In 2017 there was a rapid increase in deposits as well. The annual rate of increase in deposits, which was 16.7% at the end of 2016, rose to as high as 23.7% in October 2017, before ending the year at 17.7%. LOAN/DEPOSIT RATIO Source: BRSA 2008.Q1 2008.Q4 2011.Q1 2010.Q2 2012.Q3 2011.Q4 2013.Q2 2014.Q1 2014.Q4 2015.Q3 2016.Q2 2017.Q1 2017.Q4 100 80 60 140 160 148.2 122.6 120 2009.Q3 Loan to Deposit Ratio LC Loan to LC Deposit Ratio (%)